Argentina Credit Monitor Apr’26: NPL ratio reaches 7% y/y; loans decline 3.3% YTD in real terms, still growing 15% y/y

Research evidence excerpt

Argentina Credit Monitor Apr’26: NPL ratio reaches 7% y/y; loans decline 3.3% YTD in real terms, still growing 15% y/y

Argentina Credit Monitor EquitiesCommercial Banks

Apr’26: NPL ratio reaches 7% y/y; loans decline 3.3% YTD in real terms, still growing 15% y/y Argentina

Lower growth, NPLs still growing. The Argentine Central Bank (BCRA) growth; system LDR declined to 72.1% in April vs 72.7% in March, up from

published its banking statistics for the month of April, which show a decline 64% last year; banks remained more liquid in FX, with private sector

in loan growth (to 15.1% y/y) and asset quality deterioration, but also more deposits of USD39.2bn vs. loans of USD23.5bn (as of June 12th). Carlos Gomez-Lopez, CFA

stable LDR ratios, real profitability (5.6% ROAA) and rising capital levels, Asset quality deteriorates further. System NPL ratio increased 482bp HeadHSBCofSecuritiesEM and (USA)LatAmInc.Financials

with a Tier I of 31.1%. Overall, the banking system is still digesting the y/y, to 7.0% (+31bp m/m) as a result of high credit growth, lower inflation carlos.gomezlopez@us.hsbc.com

spike in delinquencies in consumer loans, obtaining positive returns from (which no longer erodes debts in real terms) and persistently high interest +1 212 525 5253

government bonds and waiting for loan demand to return. rates (page 8). NPL ratio deteriorated 30bp m/m for public banks (at 6.9%) Neha Agarwala, CFA

Senior Analyst, Fintech & LatAm Financials

Daily data from the BCRA showed peso loans growing at 3.4% y/y in real and 30bp m/m for private banks, at 7.0%. Cost of risk (provisions as % of HSBC Securities (USA) Inc.

terms as of June 12th, while USD loans in dollars grew at 50% y/y. FX avg. loans, 12-m rolling) was 8.2% (+15bp m/m, and +381bp y/y). neha.agarwala@us.hsbc.com